- How Much You Can Borrow Depends on Several Factors
- You May Not Get the Maximum Amount You’re Eligible for
- You Can Borrow More If You Have a Hardship
- You Can Borrow More If You Have a Hardship
- You Might Not Be Able to Borrow the Full Amount Immediately
- How to Borrow the Amount You Need
If you’re thinking about taking out student loans, you’re probably wondering, “How much student loan can I get?” Here’s what you need to know.
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There are a few things to consider when wondering how much student loan you can get. It is important to take into account the type of loan, your need for the loan, and your credit score. Federal student loans tend to have more flexible repayment options and lower interest rates than private loans. However, private loans may be necessary if you do not qualify for federal aid. Your credit score will also affect how much money you can borrow and at what interest rate. It is generally advised to exhaust all federal aid options before considering taking out a private loan.
How Much You Can Borrow Depends on Several Factors
The amount you can borrow for a student loan depends on a few factors. These include the type of loan you’re getting, the length of your schooling, and your financial need. For federal student loans, the amount you can borrow also depends on your year in school. First-time undergraduate students can usually borrow up to $5,500 per year. But there are limits to how much you can borrow.
Your year in school
One factor that determines how much you can borrow each year is your year in school. Maximum borrowing limits increase each year, with the exception of between your fourth and fifth years of undergraduate study.
For direct subsidized and unsubsidized loans, as well as for PLUS loans first disbursed on or after July 1, 2008, there’s a limit on the combined total amount of all loans that you may borrow for undergraduate and graduate study. This combined limit doesn’t apply to Direct Consolidation Loans or to Direct PLUS Loans first disbursed on or before July 1, 2008.
The combined loan limit for both undergraduate and graduate study is:
-$31,000 for dependent students (no more than $23,000 of this amount may be in subsidized loans)
-$57,500 for independent students and dependent students whose parents are unable to obtain PLUS Loans (no more than $23,000 of this amount may be in subsidized loans)
-$138,500 for graduate or professional students (no more than $65,500 of this amount may be in subsidized loans)
Whether you’re a dependent or independent student
Dependent students are usually limited to borrowing no more than $5,500 a year in Stafford Loans. This includes both Direct Subsidized and Unsubsidized Stafford Loans. If you’re a first-year student, no more than $3,500 of this amount can be in Direct Unsubsidized Loans.
Independent students and dependent students whose parents are unable to obtain PLUS Loans can borrow up to $9,500 a year in Direct Unsubsidized Stafford Loans. If you’re a first-year independent student, no more than $4,500 of this amount can be in Direct Subsidized Loans.
In addition to the annual limits on Stafford Loans, there are also lifetime aggregate limits. The lifetime aggregate limit for independent students and dependent students whose parents are unable to obtain PLUS Loans is $138,500. Of this amount, not more than $65,500 can be in Direct Subsidized Loans and Direct Unsubsidized Loans. The lifetime aggregate limit for dependent students is $31,000. Of this amount, not more than $23,000 can be in Direct Subsidized Loans and Direct Unsubsidized Loans.
Your loan type
Your loan type will generally dictate how much money you can borrow. For example, federal Stafford Loans have a maximum limit of $20,500 per year for undergraduate students. But if you’re a graduate or professional student, the limit is much higher at $40,500 per year.
There are also other types of federal loans available for students with specific needs, such as PLUS Loans for parents and graduate students, and Perkins Loans for undergraduate and graduate students with exceptional financial need. These loans generally have higher borrowing limits than Stafford Loans.
It’s also important to keep in mind that your total student loan debt – including any private loans you take out – should be manageable after graduation. Most experts recommend that your total student loan debt – including interest – not exceed your expected first-year salary after graduation.
You May Not Get the Maximum Amount You’re Eligible for
There are a few things that can affect the amount of student loan money you can get. This includes the type of loan, your school’s cost of attendance, and your financial need. Your credit history may also play a role in how much money you can get. Let’s take a look at these factors in more detail.
Your school’s cost of attendance
The first step in understanding how much student loan you can get is knowing your school’s cost of attendance (COA). Your school’s financial aid office should have this information. The COA includes:
-Tuition and fees
-Room and board
-Books and supplies
Your state of residence
Your state of residence plays a role in how much money you may be able to borrow for college. Each state has its own rules and regulations regarding student loans, and the amount you’re eligible to receive may vary depending on where you live.
For example, the maximum amount you can borrow through the Federal Direct Stafford Loan Program is $20,500 per year for undergraduate students. However, if you’re a resident of Massachusetts, you may only be able to borrow up to $17,500 per year.
It’s important to research the student loan options available in your state before borrowing money for college. You can learn more about your state’s student loan program by contacting your financial aid office or the state agency that administers the program.
Other financial aid you’re receiving
Receiving other forms of financial aid, such as grants or scholarships, can affect the maximum amount of student loans you’re eligible for. If the total amount of financial aid you’re receiving exceeds your cost of attendance, your student loan amount may be reduced or may not be offered to you at all.
You Can Borrow More If You Have a Hardship
If you’re having trouble making ends meet, you may be able to borrow more money for your education. Depending on your circumstances, you may be able to get an extension on your loan, make lower payments, or even have your loan forgiven.
There are several programs that can help if you’re struggling to repay your loans:
-The Income-Based Repayment Plan cap your monthly payments at a percentage of your income and forgives any remaining balance after 25 years of payments.
-The Pay As You Earn Plan caps your payments at 10% of your discretionary income and forgives any remaining balance after 20 years of payments.
-The Public Service Loan Forgiveness program forgives any remaining balance on your loans after 10 years of full-time employment in a public service job.
-The Military Student Loan Forgiveness program forgives up to $65,000 in student loans for members of the military.
To learn more about these programs and see if you qualify, contact your loan servicer or the Department of Education’s Office of Federal Student Aid.
You Can Borrow More If You Have a Hardship
The amount you can borrow for your student loans depends on several factors. One of the biggest factors is whether you have a demonstrated financial hardship. If you can show that you have a hardship, you may be able to borrow more money.
You’re a parent
If you’re the parent of a dependent undergraduate student, you can borrow up to the full cost of their education minus any other financial aid they’re receiving. For 2019-2020, the maximum amount you can borrow through the Federal Direct Parent PLUS Loan Program is $19,500.
If your child is attending a private school or is enrolled in a graduate or professional degree program, you may be able to borrow more. Check with your child’s school for their specific Parent PLUS Loan limits.
You’re a graduate or professional student
Graduate and professional students enrolled in certain health professions programs may borrow up to $8,500 per year in Direct Subsidized Loans and Direct Unsubsidized Loans. These include:
-Medical students (including allopathic and osteopathic medicine)
-Veterinary medicine students
– optometry students
– Pharmacy students
– Physician assistant students
If you’re enrolled in a program of study that leads to a graduate or professional degree or certificate, you may be able to borrow up to $20,500 each year in Direct Unsubsidized Loans. Your school will decide whether you can receive additional Direct Unsubsidized Loan funds each academic year above the basic eligibility amount of $20,500.
You have a disability
You may be able to get more money if you have a disability that prevents you from working. You will need to provide documentation of your disability from a licensed medical professional.
You Might Not Be Able to Borrow the Full Amount Immediately
If you’re a dependent undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans is:
You’re a first-year undergraduate student
The amount you can borrow depends on factors including whether you’re a dependent or independent student, your year in college, and your plans to attend school full or part time.
As a first-year undergraduate dependent student, you can borrow up to $5,500—no more than $3,500 of which can be in subsidized loans. An additional $2,000 unsubsidized loan is available if you demonstrate financial need. If you don’t demonstrate financial need, you’re not required to take out the unsubsidized loan.
If you’re an independent undergraduate student or a dependent student whose parent or guardian has been denied a PLUS Loan, additional unsubsidized loan amounts are available. You can get up to $9,500 as a first-year student (no more than $3,500 of which can be subsidized).
You’re a first-year graduate or professional student
Students who are enrolled in a graduate or professional degree program at least half-time may be eligible to receive up to $20,500 each academic year in Direct Unsubsidized Loans. If you’re attending school at least half-time, you may also be able to receive additional Direct Unsubsidized Loans if you’re eligible for financial aid. The total amount of Direct Unsubsidized Loans that you can receive each academic year may not exceed your cost of attendance minus any other financial aid that you receive.
How to Borrow the Amount You Need
The first step is to figure out how much you need to borrow. You can use our student loan calculator to get an estimate of how much you’ll need to borrow based on the cost of your school and your living expenses. Once you know how much you need, you can start looking at the different types of student loans available to find the best option for you.
Request a loan increase from your lender
If you’re not able to cover the cost of attendance at your school with other forms of financial aid, or if you need help covering other expenses like living costs, you may need to take out a student loan.
The first step is to fill out the Free Application for Federal Student Aid (FAFSA®) form to see if you’re eligible for federal student aid. If you are, your school will send you a financial aid offer that will list the types and amount of aid you’re eligible for.
If the amount of federal student aid you’re eligible for isn’t enough to cover your costs, or if you aren’t eligible for federal student aid, you may need to look into private student loans.
You can start by checking out private loans from your bank or credit union, as they may offer rates and terms that are more favorable than those from other lenders. If you have trouble qualifying for a private loan on your own, you may want to consider finding a cosigner. A cosigner is someone who agrees to repay your loan if you can’t do it. Keep in mind that even if you have a cosigner on your loan, it’s still your responsibility to make sure the loan gets paid back. Private loans made through Sallie Mae® are available without the need for a cosigner.
Once you’ve compared rates and terms from different lenders and chosen a loan, it’s time to apply. The process is similar to applying for any other kind of loan—you’ll need to provide some personal information and financial information, such as your income and assets. Your lender will also do a credit check, which is used to determine whether or not you qualify for the loan and what interest rate you’ll get.
After you’ve submitted your application, it will take some time for your lender to process it and give you a decision—this can take up several weeks. If you’re approved for the loan, the next step is signing the promissory note, which is a legally binding document that outlines the terms of your loan agreement. Once that’s done and all necessary documentation has been received by your lender or servicer, disbursement can begin—meaning the funds from your loan will be sent to your school (or directly to you in some cases).
Find a private student loan
To find a private student loan, you’ll need to:
– Research lenders. Some private lenders specialize in student loans. Others offer a variety of loans, including student loans. When you’re comparing lenders, make sure to compare rates, terms and conditions, repayment options and borrower benefits.
– Compare rates. The interest rate on your loan is important. It will affect the amount of money you have to repay each month and the total cost of your loan over time. Make sure to compare rates from multiple lenders before you decide on a loan.
– Apply for a loan. Once you’ve found a lender that you’re comfortable with, you’ll need to fill out an application for the loan. Be sure to read the application carefully before you sign it.
In conclusion, there are a few things to keep in mind when it comes to how much student loan you can get. First, the amount you can borrow varies depending on the type of loan you take out (private or federal). Secondly, the amount you can borrow also depends on your financial need as well as your ability to repay the loan. Lastly, keep in mind that you don’t have to borrow the full amount that you’re eligible for – only borrow what you need!